Creating privacy assets allows users to convert their public tokens into an on-chain invisible privacy form, protecting the privacy of asset value. The specific process is as follows:
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Initiate Conversion: The user initiates an "asset encryption" transaction via their wallet, specifying the token type and amount to be converted into a privacy form.
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Asset Locking: After the network confirms the transaction, a special smart contract automatically locks the user's converted tokens, providing value support for the upcoming creation of private assets.
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Value Sharding: Once the network verification nodes receive the value, they utilize shared keys and encryption algorithms to convert the value into a set of unique, random data shards.
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Credential Generation: The system creates a new "privacy asset" object for the user and stores the generated data shards within it.
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Completion: After the transaction is recorded on-chain, the user's public tokens are locked, and the user receives an equivalent amount of private assets in the form of encrypted data shards, with the true value of the asset no longer visible on-chain.